Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Tuesday 27th January 2015 Commons Chamber

The Chancellor of the Exchequer was asked—

[Katy Clark (North Ayrshire and Arran) (Lab)]

1. What recent estimate HM Revenue and Customs has made of the amount of uncollected tax in the UK.

[The Financial Secretary to the Treasury (Mr David Gauke)]

Her Majesty’s Revenue and Customs published its latest tax gap estimates on 16 October 2014. In 2012-13, the tax gap was estimated at £34 billion, 6.8% of total tax due.

[Katy Clark]

The Government’s own figures suggest that the tax gap has increased by £3 billion. Independent experts say that the tax gap could be up to £120 billion. In North Ayrshire, the local tax office has been closed by this Government, and since 2010, 10,000 people in the Treasury have lost their jobs, despite the fact that every tax inspector brings in far more—in taxes—than they cost. Do the Government believe that they should rethink their strategy?

[Mr Gauke]

The reality is that the tax gap for 2012-13 was lower than in any year under the previous Labour Government. As for the yield—the money that is brought in by HMRC as a consequence of its activity—that has gone up by £9 billion since 2010-11, and is forecast to be £26 billion this year. That is a very good record.